Hess Midstream LP acquires, owns, operates, and develops midstream assets and provides fee-based services to its sponsor, its subsidiaries, and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems, crude oil gathering systems, and produced water gathering and disposal facilities. The Processing and Storage segment includes the Tioga Gas Plant in Tioga, North Dakota, and the Mentor Storage Terminal in Mentor, Minnesota. The Terminaling and Export segment owns the Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, other Dakota Access Pipeline connections, and the Johnson's Corner Header System. Hess Midstream LP was formerly known as Hess Midstream Partners LP and changed its name to Hess Midstream LP in December 2019. It was founded in 2014 and is based in Houston, Texas.
SpaceX Seeks $40B Apollo-Led Financing for Nvidia Chips
SpaceX is reportedly seeking about $40B to finance a major Nvidia chip purchase, with Apollo Global Management expected to lead the financing. The package could include roughly $10B of bank loans and $30B of investment-grade debt, the Financial Times reported, adding another large financing commitment to the AI infrastructure buildout. Separately, David Ellison said technology will be central to Skydance's strategy following the completion of its $110B acquisition of Warner Bros. Discovery, noting in a memo obtained by Business Insider that technology is changing how content is created, distributed, and consumed. Constellation Energy jumped 12.2% Tuesday after announcing a 20-year power purchase agreement with Google tied to 890 MW of additional nuclear generation, lifting Talen Energy, Vistra, and NRG Energy by 12.4%, 10.7%, and 7%, respectively, while the State Street Utilities Select Sector SPDR rose 3%. Chevron agreed to sell interests in Hess Midstream and its DJ Basin crude midstream assets as it restructures related contracts, with revised Bakken agreements expected to cut midstream costs for its Bakken operations by roughly half. Ray Dalio warned the AI investment cycle is approaching a point where rising interest rates and heavy borrowing could trigger a reversal.
Energy Transition & Power Demand › Nuclear Generation & Utilities ▲Capital
Artificial Intelligence › AI Compute & Accelerator Silicon ▲Capital
Artificial Intelligence › AI Data Center & Build-out ▲Capital
SPCX · Capital · Positive SpaceX is seeking about $40B in Apollo-led financing to fund a major Nvidia chip purchase.
APO · Capital · Positive Apollo is expected to lead the ~$40B financing package for SpaceX's Nvidia chip purchase.
SKYD · Technology · Neutral David Ellison said technology will be central to Skydance's strategy after its $110B Warner Bros. Discovery acquisition, but no concrete product or financial development was specified.
CEG · Demand · Positive Constellation jumped 12.2% after signing a 20-year power purchase agreement with Google tied to 890 MW of additional nuclear generation.
NVDA · Demand · Positive SpaceX is seeking ~$40B to finance a major Nvidia chip purchase, a concrete order for Nvidia's products.
TLN · Demand · Positive Constellation Energy jumped 12.2% after signing a 20-year power purchase agreement with Google tied to 890 MW of additional nuclear generation.
Chevron to Divest Hess Midstream Stake in Bakken Restructuring
Chevron has agreed to divest its ownership interests in Hess Midstream and its crude oil midstream assets in the DJ Basin as the U.S. supermajor looks to slash transportation and processing costs in the Bakken. Under a series of definitive agreements with Hess Midstream, Chevron will transfer its Hess Midstream ownership interests and general partner position, along with its DJ Basin crude midstream assets, in return for $200 million in cash and improved and extended commercial terms for its Bakken operations. The new agreements are expected to reduce Chevron's unit midstream costs in the Bakken by approximately 50%, and Chevron expects the transaction to boost return on capital employed by around 0.5 percentage points while deconsolidating approximately $3.7 billion of Hess Midstream debt from its balance sheet. Chevron expects to recognize a one-time after-tax loss of approximately $3 billion to $4 billion when the transaction closes because accounting rules do not allow it to recognize the value of future Bakken midstream cost savings as an asset. The restructuring follows Chevron's completion of its acquisition of Hess Corporation in July 2025, after which combined production from the Bakken and DJ Basin reached roughly 600,000 barrels of oil equivalent per day, and the transaction remains subject to regulatory approvals and customary closing conditions with an expected close by the end of 2026.
Energy Transition & Power Demand › Natural Gas Value Chain Capital
CVX · Capital · Positive Chevron divests Hess Midstream interests and DJ Basin midstream assets for $200M cash plus improved Bakken terms, cutting unit midstream costs ~50% and lifting ROCE ~0.5pp, though it books a $3-4B one-time loss.
HESM · Capital · Negative Hess Midstream loses Chevron's ownership interests and general partner position and absorbs the transferred DJ Basin crude midstream assets, deconsolidating ~$3.7B of its debt from Chevron's balance sheet.
Hess Midstream Beats Q2 Estimates as Costs Rise Into Second Half
Hess Midstream LP reported second-quarter 2026 earnings of 75 cents per Class A share, up 1.4% year over year and 8.7% above the Zacks Consensus Estimate, even as revenues and other income declined 3.7% to $399 million. Lower throughput was the main drag on revenue, partly offset by higher tariff rates and third-party services, which more than doubled to $17.9 million from $8.2 million. Operating and maintenance expenses fell to $85.9 million from $94.1 million a year earlier, lifting the gross Adjusted EBITDA margin to 85% from 82%, though Adjusted EBITDA still slipped 0.7% to $313.7 million from $316 million. Management expects second-half volumes to exceed first-half levels, with full-year guidance of 450-460 MMcf/d for gas gathering, 435-445 MMcf/d for gas processing and 125-135 MBbl/d for both crude terminaling and water gathering, and it guided third-quarter Adjusted EBITDA to $310-$320 million as deferred maintenance and higher capital spending shift into the second half. Full-year Adjusted EBITDA guidance stands at $1.225-$1.275 billion, roughly flat at the midpoint versus 2025, while the Zacks Consensus Estimate for 2026 earnings is $2.94 per share, a 2.8% year-over-year increase.
Hess Midstream LP reported a climb in second-quarter earnings. Net income rose to $96.4 million, or $0.75 per share, compared with $90.3 million, or $0.74 per share, in the same period last year. Revenue fell 3.7% to $399.0 million from $414.2 million a year earlier.
Hess Midstream LP raises quarterly distribution to $0.7888 per Class A share
Hess Midstream LP announced a quarterly cash distribution of $0.7888 per Class A share for the quarter ended June 30, 2026, an increase of $0.0096 per Class A share compared with the first quarter of 2026. The distribution will be payable on August 14, 2026, to Class A shareholders of record as of the close of business on August 6, 2026. Chief Executive Officer Jonathan Stein said the increase highlights continued execution of return of capital to shareholders and is in line with the company's targeted 5% annual distribution growth per Class A share through 2028.
Hess Midstream and Western Midstream Offer Yields Above 7%
Hess Midstream and Western Midstream offer dividend yields of 7.7% and 8.1%, respectively, outpacing the 4.9% yield of large-cap peer Enbridge. Hess Midstream, an $8.3 billion mid-cap operator in the Bakken and Three Forks shale regions, announced a distribution increase in January and expects at least 5% annual dividend growth through 2028, supported by free-cash-flow growth and minimum-volume commitments from Chevron, which accounted for 96% of its first-quarter revenue. Western Midstream, an $18.8 billion Permian Basin operator, has a five-year streak of dividend increases and forecast 2026 distributable cash flow of $1.85 billion to $2.05 billion, while its recent $1.6 billion acquisition of Brazos and $1.5 billion purchase of Aris Water Solutions strengthen its position in the Delaware Basin and water services. Both stocks have posted gains this year, with Hess Midstream up 16.2%.
Hess Midstream LP announced it will hold a conference call on Monday, August 3, 2026, at 10:00 a.m. Eastern Time to discuss its second quarter 2026 earnings release. Participants can register in advance to receive a unique PIN and dial-in number, and the call will also be accessible by webcast on the company's website.
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